Because of the multi-million dollar hacking that happened in Coincheck this January 2018, Japan’s Financial Services Agency (FSA) plans to increase the inspections for domestic cryptocurrency exchanges.
FSA and Crypto Exchange Security
With the rapid increase of cryptocurrency exchanges and crypto usage in Japan, FSA is taking action to ensure that consumers are getting the right protection and to prevent such attacks from happening.
The financial watchdog is pushing for stronger security procedures, hence the on-site inspections of different crypto exchanges in the country. Out of the 32 virtual currency exchanges, 16 of them, including Coincheck are not formally registered in FSA yet. The reason for this is that Coincheck was already in operation before the crypto law took effect in April 2017.
FSA and Coincheck
Coincheck got its official visit from FSA on February 2, 2018 after the hacking incident that happened on January 26, 2018. The regulators inspected the company’s security and it’s ability to compensate the $422 million it promised to the victims.